Visa Inc. and financial-technology startup Plaid announced on Tuesday that they had ended their plans to merge following antitrust pushback from the Justice Department.
Chief executive Al Kelly said in a release that while he was “convinced” that the payments department would succeed in a no-confidence motion brought by the Department of Justice, he believed that “lengthy and complex litigation” would likely “completely Adequate time from “Resolve. Visa and Plaid reached an agreement with the Department of Justice to dismiss the lawsuit related to the proposed deal.
Visa shares fell 0.9% after trading Tuesday.
Visa announced its $ 5.3 billion deal for Plaid on January 13, 2020. The company was keen to engage with a new school payment-technology player that allowed people to link their bank accounts with popular fintech platforms such as PayPal Holdings Inc.’s PYPL. ,
The Justice Department alleged that Visa wanted to acquire Plaid to eliminate an emerging threat to its core debit business.
Kelly said in the Visa release, “We are focused on accelerating our business, advancing our broader strategy and continuing the Visa’s three growth pillars: consumer payments, new flows and value-added services. ”
Plaid CEO Zac Perrett said his company has seen an “unprecedented surge in demand” for its services over the past year. “While Plaid and Visa would have been a great combination, we have decided to work with Visa as an investor and partner so that we can fully focus on building infrastructure to support FinTech.”
Visa shares have increased 1.2% in the last three months as the Dow Jones Industrial Average DJIA,
7.7% is added.